Strong Negotiating from Part D Plans a Key Driver in 41% Drop from Initial Cost Estimate
WASHINGTON--(BUSINESS WIRE)-- The Pharmaceutical Care Management Association (PCMA) issued the following statement on research cited by the Centers for Medicare & Medicaid Services (CMS) that found the most recent 10-year cost estimate for Medicare Part D came in at $373 billion, a 41 percent drop from the initial cost estimate of $634 billion for 2004-2013:
“The latest reduced CMS Part D cost estimate highlights that proven pharmacy benefit management tools utilized by Part D plans are saving money without sacrificing beneficiaries’ prescription drug choices. In its analysis, CMS noted that ‘plans are negotiating better pricing than anticipated’ resulting in the benefit now costing $373 billion, a 41 percent drop from the initial cost estimate of $634 billion for 2004-2013. Additional savings would result from the greater use of mail-service pharmacies and more flexible formularies.
“As Medicaid expands under PPACA, policymakers should explore the Part D model for consumer-friendly ways to reduce wasteful spending in Medicaid pharmacy.”
PCMA represents the nation’s pharmacy benefit managers (PBMs), which improve affordability and quality of care through the use of electronic prescribing (e-prescribing), generic alternatives, mail-service pharmacies, and other innovative tools for 210-plus million Americans.
CONTACT:
PCMA
Charles Coté, 202-207-3605
KEYWORDS: United States North America District of Columbia
INDUSTRY KEYWORDS: Health Public Policy/Government Healthcare Reform Pharmaceutical Public Policy Professional Services Insurance Managed Care
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